{"id":883,"slug":"adi-development-nautique-60k-2-58m-settlement-nov-2022","title":"Adi Development / Nautique (Burlington) — first major HCRA Notice of Proposal; November 2022 LAT settlement: $60K AMP + $2,585,674.58 to 141 purchasers","kind":"reference","scope":"business","status":"current","audiences":["kevin","candid-team"],"topics":["gc-vertical","hcra-enforcement","regulatory-signals"],"reference_body":"**Claim:** Adi Morgan Developments (Lakeshore) Inc. cancelled purchase agreements at the Nautique condo project in Burlington in March 2022, citing a $43M cost escalation (35% over budget); buyers were offered re-purchase at higher prices or deposits back. On **August 25, 2022**, HCRA issued a **Notice of Proposal to revoke** the licences of nine Adi entities — **the first time it moved to strip an active builder's licences**.\n\nOn **November 30, 2022**, Adi settled at the LAT. Adi Lakeshore admitted only to **failing to return deposits within 10 days** of cancellation, paid a **$60,000 penalty to HCRA** (the first AMP-style payment), and **voluntarily paid $2,585,674.58 in 6% interest to 141 affected purchasers**. No findings on obstruction or falsified documents. All current and future Adi-licensed entities operate under conditions for two years.\n\n**Source:** <https://storeys.com/adi-developments-settles-hcra-resume-building-selling-condos/>\n\n**Confidence:** Verified.\n\n**Pattern illustrated:** the LAT settlement track (the first major test of HCRA's revocation power), and the **pre-construction price-hike pattern** that drove much of 2022-2025 enforcement (alongside Pinetree, GC King Bond, Briarwood, and Hira).\n\nBuyer Hisham Alsharif told the Globe and Mail his Agreement of Purchase and Sale appeared to have been altered before HCRA reviewed it — a reminder that the LAT settlement track does not always test the full set of allegations.","rationale_body":null,"metadata":null,"links":{"outgoing":[{"slug":"hcra-code-of-ethics-o-reg-245-21-july-2021","title":"HCRA Code of Ethics (O. Reg. 245/21) in force July 1, 2021 — Discipline Committee max fines $50K individual / $100K corporation","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"lat-15-day-appeal-window-for-hcra-orders","title":"HCRA Notice of Proposal / order appeals go to the Licence Appeal Tribunal within 15 calendar days; further review at Divisional Court on law","kind":"reference","scope":"business","link_type":"depends-on"}],"incoming":[{"slug":"research-brief-hcra-ontario-may-2026","title":"Research brief: Ontario Home Construction Regulatory Authority (HCRA) — definitive reference (May 2026)","kind":"reference","scope":"business","link_type":"relates-to"}]},"created_at":"2026-05-24T13:50:00.837Z","updated_at":"2026-05-24T13:50:00.837Z"}